We all aspire to own a home with white picket fences and a big lush green lawn. You identify a house you like, commit to your mortgage payments, sign the paperwork, and you are a homeowner. Well, not quite. What you are not aware of are the extra expenses and processes that you may encounter before you finally acquire your new home. When it comes to owning a home, here is what people don’t tell you.
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The online mortgage calculator does put everything into account
Financial experts recommend that you should not spend more than 30% of your income on housing. You will quickly assume the amount payable each month will be the total cost of the house divided by the number of months your mortgage is set to run. In truth, the monthly contribution will most likely be higher. The online calculator usually sets the down payment at 20% and does not factor other costs such as taxes and insurance. What may seem to be within your budget may be beyond it.
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Do not underestimate a proper inspection
You have found a house that you like, and your offer has is approved; what next? You need to get the house thoroughly inspected. As a great home inspector in Buffalo says, you need to find the problems in your house before you inherit them. The report may be terrifying, but it gives you a clear picture of what you are buying. It also helps you to decide if the house is worth the initial price or you will need to negotiate.
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Find out the development plans of the neighborhood
As inconsequential as it may sound, it will serve you best to be aware of the development plans of the surrounding property. For example, as a parent to young kids, an upcoming play area would be a plus on your decision to buy. For a person without kids, it may be the opposite. The sound of children screaming as they go down a slide may not be their idea of a relaxing afternoon. Before you commit to buying the property, head over to the local planning office, and get a clear picture of the neighborhood’s plans.
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Do not splurge on the furnishings yet
You cannot wait to move into your new home, with a brand new modern sofa or a fridge you’ve been eyeing. Hold your excitement until you are done with the process of acquiring the house and are still on budget. Especially if you were planning to buy the furnishings on credit, it would negatively affect your home loan since you have increased your debt in relation to your income. Once you have taken care of the initial costs and ascertained that your finances are still looking healthy, you can treat yourself to a few items.
Buying a house is a big and at times frustrating project, but when you can finally sit on your lawn and sip on tea as you read a book, it will be all worth it.
